EPFO Joins NHAI’s Raajmarg Infra InvIT as Strategic Investor; Commits ₹1,000 Crore

The Employees’ Provident Fund Organisation (EPFO) will participate as a strategic investor in the infrastructure investment trust promoted by the National Highways Authority of India (NHAI), as per news reports.  

The investment relates to the maiden public issue of units by Raajmarg Infra Investment Trust (RIIT). 

Investment Structure of RIIT Public Issue 

As per report, EPFO has committed about ₹1,000 crore to the issue. This investment is expected to give the retirement fund body around 16.6% of the total units being offered in the public issue. 

NHAI, the sponsor of the InvIT, has committed to holding roughly 15% of the units. The EPFO allocation would therefore exceed the sponsor’s stake in the offering. 

Other Investors and Issue Details 

SBI Life Insurance Company Ltd will also take part as a strategic investor. The insurer plans to invest about ₹260 crore, which would translate to around 4.3% of the units. 

Managers of the InvIT are expected to invite bids from anchor investors starting March 10. Anchor investors usually subscribe to units before the issue opens for participation. 

The price band for the issue has been fixed at ₹99 to ₹100 per unit. The minimum bid size for anchor investors has been set at 150 units, or ₹14,850 at the lower end of the band. 

Additionally, around 10% of the units may be reserved for retail investors. 

Highway Assets in the Portfolio 

RIIT plans to acquire five operational highway stretches from NHAI with a combined length of about 260 kilometres. These road assets are located across 4 states. 

The assets include the 80.52 km Gorhar-Barwa Adda stretch in Jharkhand and the 69.4 km Chilakaluripet-Vijayawada section in Andhra Pradesh. 

2 stretches in Tamil Nadu are also part of the portfolio: the 32.6 km Chennai Bypass and the 33 km Chennai-Tada road. The remaining asset is the 44.6 km Nelamangala-Tumkur section in Karnataka. 

Funding Structure and Asset Monetisation 

To acquire these road assets, RIIT plans to mobilise about ₹9,500 crore. Around ₹6,000 crore is expected to come from equity raised through the public issue, while the remaining ₹3,500 crore will be funded through debt. 

Over the next 3 to 5 years, NHAI plans to transfer additional highway stretches of around 1,500 kilometres to the InvIT as part of its asset monetisation programme. 

In a separate transaction, NHAI has accepted a ₹6,220 crore offer from National Highways Infrastructure Trust (NHIT) for acquiring 2 highway stretches. 

Read More: EPFO Likely to Retain Provident Fund Interest at 8.25% for 2025–26! 

Conclusion 

Infrastructure investment trusts continue to be used as a channel for monetising operational highway assets, while also attracting long-term institutional investors such as pension and insurance funds. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
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